Malaysia’s Principal Hub incentive: Revised guidelines

Enhancing the regulatory tax ecosystem for local and foreign companies

  • Share

Revised Principal Hub guidelines

Enhancing the regulatory tax ecosystem for local and foreign companies

On 3 August 2017, the Malaysian Investment Development Authority (“MIDA”) released revised Principal Hub (“PH”) guidelines1. This set of revised guidelines supersedes the previous 2015 PH incentive guidelines dated 6 April 2015. The PH guidelines are to encourage both local and foreign multinational companies (“MNCs”) to establish regional or global operational centres in Malaysia.

EY - Five key features of Malaysia’s Principal Hub incentive

Snapshot of Principal Hub incentive

An approved PH-status company has the following tax advantages:

EY - Tax advantages and other benefits for a PH status company

 


“As a preferred regional or global operations centre, Malaysia continues to be a choice destination for foreign companies hoping to leverage on her skilled multi-lingual talent pool and world-class infrastructure. The enhanced Principal Hub incentive is the additional magnet to drive MNCs' interest to expand their regional operations from Malaysia.”

— Yeo Eng Ping
Tax Managing Partner, EY Asean


Get the full report in PDF

top